H-1B Fee Hike Targets U.S. Firms More Than Indian Giants

(UNITED STATES) A proposed H-1B visa fee hike is likely to hit U.S. firms harder than Indian tech giants, according to a new data-driven review by Forbes India. The analysis points to a shifting H-1B landscape: fewer visas recently going to Indian nationals, a tilt toward new hires over extensions, and big U.S. technology companies now standing alongside Indian outsourcing leaders as top H-1B users. With higher filing costs on the horizon, American employers that rely on specialty talent could face tougher choices on hiring, budgets, and project planning in the United States 🇺🇸.

Recent trends in H-1B distribution

Forbes India’s review indicates a clear decline in visa issuances to Indian nationals in recent years. Over the past two years, the number of H-1B visas granted to Indians fell by about 22%, with related categories like H-4 (spouses and certain dependents) and L-1 (intracompany transfers) also seeing drops. That shift matters because Indian professionals have long formed the backbone of H-1B talent pipelines, especially in software, cloud services, and enterprise systems.

At the same time, the mix of H-1B cases has changed. A larger share now goes to first-time hires rather than extensions of existing roles. The data suggests employers may be prioritizing fresh recruitment—possibly to keep costs in check amid policy uncertainty—or facing tighter scrutiny when seeking renewals.

Either way, this pattern means employers could be more exposed to fee pressure at the front end of hiring cycles.

Who the biggest users are now

Forbes India also points out how today’s major H-1B users include U.S. tech household names. Amazon, Microsoft, and Meta now rank alongside Indian IT leaders such as Cognizant, TCS, Infosys, and Wipro in sheer H-1B scale. That highlights how deeply American employers depend on global talent for roles in advanced computing, enterprise platforms, e-commerce infrastructure, and AI.

If H-1B costs rise, these companies may have to rethink how they structure teams and projects—especially where timelines are tight and certain skills are scarce.

Pay patterns and business impact

Pay patterns underscore the stakes. H-1B professionals in computer and IT roles tend to have higher median compensation than many other visa categories, reflecting how employers value these skills and struggle to replace them locally.

According to the Forbes India analysis, these jobs are central to research, product development, and operations. That explains why the proposed H-1B visa fee hike could ripple through budget planning and roadmaps for new features or services.

Another backdrop is India’s strong tech export momentum. Indian ICT exports have outpaced those of the United States in recent years. This trend may be part of why U.S. policymakers keep a tight focus on immigration and work visas. It also means global talent and project work can shift quickly across borders if costs and rules change in key markets.

Policy shifts and corporate response

If H-1B costs climb, U.S. firms face a bigger relative shock than Indian IT giants, the Forbes India analysis suggests. American companies with large H-1B headcounts—often in hard-to-fill roles—could feel pressure to:

• Change hiring plans
• Reduce projects
• Move work offshore

In contrast, Indian service providers that already run global delivery centers may be better placed to absorb higher visa costs or rebalance teams across countries.

Based on the data trends, companies may recalibrate hiring strategies in three main ways:

1. Push more tasks offshore to existing global hubs, or rely more on local U.S. talent where skills overlap and training timelines are shorter.
2. For specialized or niche roles, favor outsourcing or subcontracting instead of direct H-1B hiring, limiting exposure to higher fees and compliance risk.
3. Increase internal mobility through intracompany transfers under L-1 or adjust relocation plans across multiple countries for roles that can be based outside the United States.

As employers weigh options, many will review visa designations more closely. With H-1B becoming pricier, interest may rise in alternatives like L-1 and O-1. Each path has limits—such as the need for existing ties to the company for L-1, or strict criteria for extraordinary ability under O-1—and none offers a one-size-fits-all solution. Still, business leaders will likely test these routes where job duties and employee profiles fit the rules.

Compliance risk and competitive advantage

Compliance risk is another theme running through the Forbes India findings. When costs rise, regulators often sharpen audits, and companies tighten their own checks. That can add legal risk for both employers and employees, especially where job descriptions, wage levels, and work locations need clean documentation.

Firms that invest in stronger processes may get through reviews faster, which could turn into a competitive advantage in recruiting.

Important: Strong immigration programs, clear documentation, and proactive compliance can materially reduce legal risk and hiring delays.

The U.S. innovation question

Beyond hiring plans, the analysis raises concerns for the broader innovation ecosystem. If higher visa costs slow recruitment or force delays in R&D-heavy projects, the impact could reach areas like advanced computing, chip design, cybersecurity, and AI.

Those fields depend on specialized talent and often require teams that mix senior U.S. experts with global specialists. If that mix becomes harder to sustain, upgrades to core systems and ambitious new products could slip.

VisaVerge.com reports that when employers face unpredictable costs or longer timelines, they often trim the number of roles they sponsor. Over time, that can shift entire projects abroad or reshape which markets receive new investment.

The Forbes India review suggests this risk is more acute now because big U.S. tech employers have become such large H-1B users.

What this means for professionals

For candidates and current visa holders, the ground is shifting. Expect:

• More detailed conversations with hiring managers and HR about who pays for visa fees, how roles are structured, and contingency plans if policies change mid-process.
• Ongoing strong demand for H-1B applicants in computer-related jobs, but a preference for candidates who can:
  • Start quickly onshore,
  • Move under L-1 due to existing company ties, or
  • Work from offshore locations until a slot opens up.

Practical points for workers tracking the proposed fee hike and employer responses:

• Visa cost pass-through: Some companies may try to adjust salary bands or job levels to offset higher costs. Ask early about compensation structure and whether fees affect pay.
• Employer due diligence: Favor companies with strong immigration programs and legal teams. Firms with global offices may have smoother pathways if plans need to change.
• Role and visa clarity: Get clear promises in writing about which visa will be used, who pays which fees, and what support you get if policies shift after you join.
• Backup plans: Keep options open, including L-1 for intracompany transfers, O-1 for extraordinary ability, or roles in global hubs that match your skills.

What employers should do now

The planning window is now. Even without precise timelines or final cost figures, the direction of travel is clear in the Forbes India analysis.

Actions companies should consider:

• Budget for higher upfront costs.
• Diversify visa strategies and map which roles can move offshore.
• Strengthen immigration and compliance processes to reduce audit risk and hiring delays.

Companies that manage the shift well could continue hiring at speed, while others may face delays that hurt product launches or service levels.

Policy discussions will continue in Washington, with lawmakers weighing labor market needs, training programs for U.S. workers, and global competition. For firms and workers, the key is staying current with agency guidance and preparing documentation carefully. The U.S. Citizenship and Immigration Services (USCIS) H-1B page remains the main official source for program rules, eligibility, and process details.

Longer-term outlook and signals to watch

While the data shows fewer H-1B approvals for Indian nationals and a rise in first-time hires, the broader labor market still needs specialized skills to deliver large-scale systems, security upgrades, and new digital products.

That is why the Forbes India analysis points to a larger relative shock for U.S. firms. American companies that depend on H-1B talent for core functions—data engineering, applied AI, enterprise cloud, and more—will have to decide which roles must stay stateside and which can move.

Indian IT giants, by contrast, already operate with global footprints and flexible staffing models across delivery centers. They may still feel the pinch of higher fees, but they can often rebalance teams across locations faster. If the proposed fee hike pushes more work offshore, Indian providers could even see new project flows, while some U.S. firms pause or scale down hiring plans.

This moment also tests how employers support workers. When visa paths get costlier or slower, anxiety rises for employees and families—especially H-4 dependents who plan careers and schooling around status stability. Clear communication, fair cost policies, and careful planning matter.

Companies that treat immigration as a core workforce function—not an afterthought—are more likely to keep critical talent and win new candidates.

Watch for three near-term signals that will show how the proposed H-1B visa fee hike is affecting the market:

• Recruiting timelines for H-1B roles in big tech.
• Job postings shifting toward offshore or contractor models.
• Increased interest in L-1 and O-1 where job duties allow.

If those signals strengthen, the effects of the proposed H-1B visa fee hike—outlined by Forbes India—will be visible in how U.S. firms organize work and where future projects land.